SOURCE: Great West Gold, Inc.

July 01, 2005 10:45 ET

Great West Gold, Inc. -- Clarification of Potential Acquisition and Restructuring

The Company Clarifies Its Plans

NEW YORK, NY -- (MARKET WIRE) -- July 1, 2005 -- Great West Gold, Inc. (OTC BB: GWGO) has received a large number of enquiries regarding its planned restructuring and its potential acquisition. The Company clarifies the proposals as follows :-

RATIONALE :-

The Company has for some time recognized the fact that its dismal share price performance required a major corporate restructuring and to this end, the Company has examined countless possibilities to unlock value for its shareholders. The rationale was a "Reverse Split" of the Company's stock, coupled with a financing of the Company, would not be in the interests of shareholders.

PROPOSED RESTRUCTURING OF GOLD MINING & EXPLORATION ASSETS :-

BACKGROUND :-

The Company has announced plans to dispose of its interests in the two Arizona Gold Mining Projects to two newly created companies, Windsor Resources, Inc. ("Windsor") and Sentinel Resources, Inc. ("Sentinel"). It was intended that both Windsor and Sentinel obtain funding to develop these projects independently of the Company and for the shares of both Windsor and Sentinel to be admitted for trading on the OTC Market, therefore these two focused independent Gold Mining & Exploration companies would be better positioned to serve shareholder interests. The Company was forced to place these plans on hold until such time as the Company was up to date in its filings and third parties would be in a position to judge the Company upon its audited accounts and its up to date filings. The Company is now in a position to expedite these plans.

PLANS :-

The Company has now re-entered into discussions to expedite the transactions in respect of both Windsor and Sentinel. If successful, it is the intention of the Company to distribute the majority or all of its shareholdings in Windsor and Sentinel to the Company's shareholders, and at such time as both Windsor and Sentinel are quoted on the OTC Market.

PROPOSED ACQUISITION :-

The Company is now in advanced discussions to acquire interests in another industry sector, which if successful, will result in the Company entering another business sector after disposing of the shares in its mining interests (Windsor and Sentinel) to its shareholders.

PROPOSED NAME AND TRADING SYMBOL CHANGE :-

If the Company is successful in the acquisition as mentioned, the Company would then change its name and its Trading Symbol and would effect a restructuring of its outstanding stock.

LOAN NOTE :-

St James Capital Holdings, Inc. which holds a Loan Note from the Company in the amount of US$1,500,000 is assisting in these transactions and has agreed not to demand a conversion of this Loan into Common Stock of the Company at this time.

DISTRIBUTION (OR DIVIDEND) OF WINDSOR AND SENTINEL SHARES :-

The Company wishes to stress that no restructuring (or Reverse Split) of its outstanding stock will take place until such time as the Company has concluded the transactions in respect of both Windsor and Sentinel. The Company stands by its promise that shareholders will not be diluted further without a significant unlocking of value for themselves.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities.

About Great West Gold, Inc.

Great West Gold, Inc. (www.greatwestgold.com) is a gold exploration company that has acquired certain rights to mine for minerals, primarily gold, in Arizona.

Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties beyond the Company's control, including but not limited to economic, competitive and other factors affecting the Company's operations, management team effectiveness, expansion strategies, available financing, market prices and recovery costs, government regulations involving the Company, facts and events not known at the time of this release, and other factors discussed in the Company's filings with the Securities and Exchange Commission.

These statements are not guarantees of future performance and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements.

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